Cape Lambert to sell Lady Annie

Finance

Publishing Date: 11 Mar 2010 10:55am GMT
Author: Mining Journal

ASX-listed Cape Lambert Resources Ltd will sell its Lady Annie project in Queensland to an unknown Asian buyer, abandoning the proposed listing it had planned for spin-off Q Copper, MiningNews.net reports.

The West Australian-based company requested a trading halt today pending an announcement to the market regarding the trade sale of the project.

A spokesperson for Cape Lambert told MiningNews.net that the buyer was an Asian company and that the company was likely to receive around A$150 million (US$135.5 million) from the sale.

"Previously the company tried to IPO it, but (the trade sale) will achieve the same, if not a better, result," the spokesperson said.

Last month, Cape Lambert postponed its IPO for Q Copper due to "adverse market conditions".

It was the second time the IPO had been withdrawn; it having been deferred in December 2009, when 25% of investors failed to meet settlement obligations.

At the time, Cape Lambert chairman Tony Sage told MiningNews.net that there was a chance the IPO may not go ahead at all, due to a "new development".